The new growth theory asserts that profits are
A) temporary, because the discoveries that lead to profits are eventually used by all.
B) an illusion, since costs are never fully covered.
C) permanent, because physical activities can be replicated.
D) not an essential component determining whether the economy grows or not.
E) permanent, because they are derived from discoveries.
A
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Which of the following statements is FALSE?
A) Cartels only form among members of an oligopoly. B) A cartel might form if members believe they can increase profits by coordinating activity. C) Members of a cartel produce less output than that produced in a competitive market. D) Cartel members often have an incentive to cheat.
If a corporation acquires more debt to make itself a less attractive target for hostile takeover,
a. the value of the stock rises b. the proceeds are used to pay stockholders a one-time dividend c. this strategy will fail since it won't be able to raise funds d. it will use these funds to purchase new equipment e. the corporation will become a more attractive target